Studio Display Cut Out (Video and Audio)

I have a new MacBook Air M3 in Clam Shell mode with an Apple Studio Display and another LG monitor. Generally the setup works well; however, the Studio display will randomly cut out for a second or two (causing both monitors to flicker) and then come back. When the display returns I lose the studio display as an audio output. Additionally, the SSD that I have connected to the studio display is also gone.

The only way to fix this is unplug the display, wait 15 seconds and plug it back in again - essentially rebooting it. I will get access to the display as an audio output and my SSD connected to the display will be remounted.

Note that I have tested the dual monitor setup on two LG displays and this behaviour does not happen - it is only with the Apple Studio Display.

After this happens if I hold Option and click the Apple Menu -> System Information -> Graphics and Display it will show the Studio Display but will not show its current firmware version. (See the image below - no Firmware version shown)

This is VERY frustrating as this will randomly happen during the day. Once it happens it will continue every once in a while until it is rebooted. Should I return this display for a new one?